Rupert Murdoch's Fox Entertainment Group Inc. is bulging with profits in the wake of the hit movie "Titanic," a prospectus filed with the Securities and Exchange Commission shows.

News Corp. , Fox's parent company, filed the prospectus in connection with plans to sell as much as a 20% stake to the public in the Hollywood film and TV studio, a transaction that analysts estimate could raise as much as $3 billion for the...